Property

90% of Hongkongers think the property market is overpriced

Hong Kong’s number one property platform GoHome.com.hk today announces the results of Hong Kong Property Perspective Survey forecasting into the first half of 2017. Results reveal that nearly 90% of respondents believe that the Hong Kong housing market is overpriced and nearly 80% think that the new cooling measures have failed to stabilise property prices, while close to 50% predict property prices will continue to rise. Overall, they expect the next Chief Executive to provide an effective remedy to solve the issue of land shortage, which is a key factor to the rise of property prices.

Out of 2,872 respondents, nearly 90% (89%) of respondents see the housing market as overpriced. When compared with results from 2013 to 2017, respondents who find property prices unaffordable have increased by 12%. In the meanwhile, 52% think that the market is overheated and 66% view the cooling measures as ineffective in battling soaring property prices.

Close to 80% (78%) of respondents strongly believe that the new cooling measures to be ineffective in stabilising property prices because the government have failed to tackle the problem of land shortage, population rise and hot money from China. On the other hand, about 70% (68%) find the cooling measures responsible for boosting property and rental prices.

In retrospect, most respondents feel that the government’s housing policies in 2016 have failed to regulate market prices, while nearly 80% of them (78%) convey that the new cooling measures have not resolved the fundamental issues of the property market. On the topic of land development, most respondents agree to the development of brownfield for residential use (75%) and the amendment of town planning policies to allow for the change of use of industrial buildings and warehouses to residential units (76%), while over half of them (53%) oppose to developing country park land.

Ms. Carrie Law, Regional General Manager of iProperty Group (Hong Kong & Macau) stated that, “Since 2012, Gohome.com.hk has been conducting the Hong Kong Property Market Perspective Survey twice a year to analyse public opinion on Hong Kong’s property market trends and housing policies. Findings in this survey reflect that respondents are unsatisfied with the cooling measures in curbing property price rise; the market is expected to go upward in the near future. People are looking forward to the new government to stabilise Hong Kong property market with a series of new policies. On the other hand, developers will continue to provide special offers and discount for home starters, pushing the property plot to be dominated by primary market. In terms of the secondary market, the sufficient supply of mid-priced properties and the increase in budget and bargaining power will contribute to more active transactions in the mid-priced secondary market. Last but not least, investors are opted to head overseas for property purchase in view of the cooling measures launched late last year.”

Since 2012, Gohome.com.hk has been conducting the Hong Kong Property Market Perspective Survey twice a year via online questionnaire to analyse public opinion on Hong Kong’s property market trends. The latest survey was jointly conducted by Squarefoot.com and SMART Expo, fellow brands under the same group, during January 2017, and has gathered data from 2,872 respondents from different age and income groups.